New Balance Exec Explains Why Today’s COOs Make Tomorrow’s CEOs
In today’s fast-evolving corporate landscape, the traditional paths to the CEO role are being redefined. Increasingly, Chief Operating Officers (COOs) are becoming strong candidates for the top job. This shift is driven by their blend of operational expertise and crisis management experience. New Balance’s COO, Dave Wheeler, exemplifies why COOs are ideally positioned to lead, particularly in industries that rely heavily on product innovation and efficient supply chains.
Crisis Management as a Training Ground for COOs
The Covid-19 pandemic posed unprecedented challenges for businesses worldwide, thrusting COOs into critical leadership roles. Dave Wheeler, COO of New Balance, highlighted how the pandemic forced COOs to juggle short-term crisis management with long-term business strategy. This dual responsibility sharpened the leadership skills of many COOs, making them capable of handling high-stress, high-stakes environments—qualities essential for any CEO.
During the pandemic, COOs had to solve complex problems, such as supply chain breakdowns and rapid shifts in consumer demand, while ensuring day-to-day operations continued smoothly. As Wheeler points out, “Running and transforming the business” became the mantra for COOs during this period. By maintaining stability while simultaneously preparing for the future, COOs like Wheeler demonstrated the strategic acumen required to lead companies through even the most turbulent times.
This experience is not limited to the pandemic. COOs are often called upon to manage operational disruptions caused by geopolitical issues, economic shifts, or technological changes. This deep experience in crisis management gives them a unique edge when transitioning into the CEO role.
The Strategic Advantage of Operational Expertise in Leadership
One of the core advantages COOs bring to the CEO role is their deep understanding of company operations. Wheeler emphasized that COOs are often the only executives with full visibility into how products are made, from conception to market delivery. This operational expertise is invaluable, especially in product-driven industries like manufacturing, retail, and logistics.
A COO’s operational insight allows them to align short-term performance with the company’s long-term strategic vision. This balance is essential for sustained growth, particularly when businesses scale rapidly, as New Balance did, reaching $6.5 billion in revenue. By mastering the complexities of operations, COOs ensure that daily functions support broader strategic goals.
Tim Cook’s rise from COO to CEO at Apple serves as a powerful example of how operational expertise can drive business success. Cook streamlined Apple’s supply chain, significantly reducing suppliers and optimizing production processes. This operational excellence laid the foundation for Apple’s continued dominance in the tech industry, proving that COO-led leadership can result in long-term profitability.
COOs as Innovators and Change Agents
While COOs are often seen as tactical leaders focused on optimizing efficiency, many are also at the forefront of innovation. As companies grapple with rapid technological advancements and shifting market demands, COOs play a pivotal role in driving change from within. For instance, New Balance’s expansion during and after the pandemic was not just a feat of operational management but also of strategic innovation.
COOs like Wheeler are increasingly involved in digital transformation initiatives, helping integrate new technologies that enhance productivity and customer experiences. Sheryl Sandberg’s tenure as COO at Meta (formerly Facebook) is another example of how COOs can lead transformative efforts. Under her leadership, Meta successfully pivoted toward monetization strategies that significantly increased revenue.
The ability to innovate while ensuring operational stability is a rare combination, and one highly valued in the CEO role. COOs who demonstrate this capacity to lead change are often seen as natural successors to CEOs, particularly in industries where innovation is critical to staying competitive.
The Importance of Soft Skills in the COO-to-CEO Transition
While operational excellence is crucial, leadership is about more than managing processes—it requires the ability to inspire and guide teams toward a common goal. COOs must possess strong interpersonal and leadership skills to transition successfully into the CEO role. Dave Wheeler, for instance, highlights the importance of role-modeling in leadership, ensuring that his team at New Balance embodies the company’s core values of integrity, teamwork, and customer satisfaction.
In addition to managing operations, COOs must be adept at motivating their teams and fostering a culture of innovation and collaboration. Leaders like Wheeler understand that setting the right example and cultivating buy-in from employees are essential for driving long-term success.
These soft skills—often overlooked in discussions about operational roles—are just as important for CEOs as strategic and operational expertise. Also, COOs must master the art of decision-making and long-term planning. This includes not only addressing immediate challenges but also preparing for future disruptions and opportunities. As New Balance’s recent growth demonstrates, COOs who successfully balance these responsibilities are well-positioned to lead companies through both stable and turbulent times.
COOs are increasingly recognized as ideal candidates for the CEO role. Their ability to manage crises, align operations with strategy, drive innovation, and lead teams makes them uniquely qualified to steer companies toward long-term success. New Balance’s Dave Wheeler is a prime example of how COOs are not just operational experts but visionary leaders who can navigate the complexities of today’s fast-paced market.
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